TP FAQs: Positioning of a Full-Fledged Distributor | 全功能分销商如何定位

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Generally, a Full-Fledged Distributor (FFD) executes all sales and distribution functions and is responsible for the expenses associated with managing the warehouse, the logistics, marketing, and other sales support, as well as after-warranty service.

In addition, FFD offers after-sales services.

It purchases, holds, and sells goods; sales are recorded on its books.

Full-Fledged Distributor also develops essential marketing intangible assets (such as trademarks).

Because the FFD undertakes operational and entrepreneurial functions relating to the marketing, distribution, and sales activities, they bear the risks associated with them, such as:

  • Price risk;
  • Volume risk,
  • Credit risk,
  • Market risk,
  • Marketing intangibles risk,
  • Risk on unsaleable stock, obsolescence of stocks, reclamation of goods,
  • Currency risk etc.

Hence, FFD has the most potential for making a profit, but its earnings are also the most volatile due to market volatility.

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